Pic explaining form factor of the rumoured PSP phone!Pic source:www.unwiredview.com

The main question Sony Ericsson asked when designing PSP phone was - what is the main problem with using your phone for mobile games?And the answer was - gaming controls.The numeric keypad is just not good enough to control the action in games. But who says all the keys on the numeric keypad have to be identical?Sony has already designed very good game controls on PSP. So now they just made a few keys on numeric keypad into a game controls and the problem was solved.The other problem was that most of the good games are played holding PSP console with both hands and using two thumbs to control game characters. And the phone is operated usually with a single hand and thumb.Rotating screen came to the rescue here. When the device is in a phone mode, all you have is a simple mobile phone with numeric keypad , menu and function keys. Turn the screen around 180 degrees, your menu/functional keys are transformed into game controls and you have a perfectly good portable gaming device.Oh and why not use the screen turned 90 degrees to make this device into a mobile TV station as well?The beauty of it all is that Sony will not have to worry about the games for the PSP phone. Just make it compatible with the standard PSP games and Nokia will have a really tough time catching up with itâs next gen N-Gage platform.

From: engadget

The mention of PSP phone highlighted.(Pic from engadget)

*PSP Phone reference spotted in Sony MagazinePosted Feb 15th 2008 9:58AM by Joshua TopolskyFiled under: CellphonesNow obviously, before proceeding here you're going to want to find the largest grain of salt you can locate and keep it nearby. According to SEfanatics, a page in an issue of Sony Magazine (an office favorite over here) makes passing mention of a "PSP-Style phone" which is supposedly in development, then casually suggests the device could be "in shops as early as February." Of course, we've been hearing hushed conversations about this topic for some time now, though it does strike us as slightly odd that it's referenced in what is essentially a multi-page Sony advertisement. Sure, it's possible that something like that patent we recently saw could be headed our way -- obviously the company is still capable of throwing a few curve-balls in our direction, though we're going to need to little more evidence than this to start cracking open our piggy banks.

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Even found this picture on the internet ..looks awesome,I'll start saving from now to get this phone!